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Latest revision as of 20:31, 20 May 2026
There is much confusion about what constitutes foreign earned income with respect to the residency location, the location where the work or service is performed, and the source of the salary or fee anjing. Foreign residency or extended periods abroad of the tax payer is really a qualification to avoid double taxation.
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Because of the increasing tax rate better brackets, a reduction of taxable income with the higher bracket saves you more tax than exactly the reduction for just a lower range. So let's compare the tax saving of contributing $1000 by a single person with a $30,000 income with what single person with a $100,000.
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